Gold setup to the short side?

Gold has arrived at an interesting crossroad here.  From the early September highs to the recent lows it has now retraced 50%, and also exactly run into its 50 day moving average (yellow line).  If we think about it from a correlation point of view with equities (second chart below) , note it's fairly inverse..i.e. stocks go up, gold goes down. It's a simplistic view but it works for these purposes.  So, should we get a little more year-end buying in equities it could well correlate with some weakness in gold.  We are not talking about a crash here, but maybe a move down to the 1600 for gold could be in the cards.

 

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